U.S. Senator Ted Cruz has revealed that he, and other Republican party members from Texas, would like to see the state become the center of the cryptocurrency universe. Cruz made this announcement at the Texas Blockchain Summit.
Rebuilding The Local Economy
North America’s largest Bitcoin mine, operated and owned by Whinstone U.S., located at Rockdale, has quickly become an important part of the town’s economy, having already added around 145 jobs, and is also becoming an integral part of the community. Whinstone CEO Chad Everett Harris has revealed that plans are afoot to expand the mining facility and make it the largest mining facility in the world.
Central To Texas’ Ambitions
Rockdale finds itself right in the center of Texas’ crypto ambitions, with the state drawing in the cryptocurrency industry as both federal and state lawmakers work on laying the foundation for the blockchain industry in Texas. Industry leaders from the blockchain space, on their part, reveal that they are drawn to Texas’s cheap energy and friendly regulatory policies.
U.S. Sen. Ted Cruz, R-Texas, while speaking at the Texas Blockchain Summit, which saw an attendance of around 700 attendees, said that he hopes to see Texas become the center of the Bitcoin universe and crypto. Republican politicians made an impassioned case for the crypto space in Texas.
A Few Doubters Remain
The nascent industry does, however, have its fair share of doubters and opponents. Several individuals have flagged the significant amount of energy required to mine cryptocurrencies such as Bitcoin, thanks to their Proof-of-Work Consensus mechanism. This has given rise to significant concerns about the environment, along with the added strain it would put on the already overworked and fragile power grid of Texas.
The growth has also come in bursts; in 2018, a Chinese company designing specialized computers for crypto mining promised a $500 million investment and hundreds of jobs, but which did not come about. However, leaders in Texas are pushing ahead with their plans, with Texas Gov Greg Abbot meeting with the Texas Blockchain Council and promising that the state would soon be the #1 destination for the blockchain industry and cryptocurrencies.
A Perfect Combination
According to entrepreneurs in the crypto space and Republicans in Texas, crypto and Texas are a perfect pair. Senator Cruz described the relationship, saying that there is a natural synergy between the state’s ethos and blockchain technology.
He also added that Texas “lionizes” entrepreneurs, with the state’s anti-regulatory laws highly appealing to the crypto industry, which lays huge emphasis on privacy. Cruz stated that the cryptocurrency industry is an industry that is based on individual freedom, individual responsibility, and a lack of dependence on the government.
Everett Harris further emphasized this point, stating,
“We came here because of power and the deregulated market,” Harris said. “We knew power was a competitive component. And we knew at large scale; we could get power at a lower price.”
Energy And Climate concerns
China was, for a long time, the leader when it came to bitcoin mining and cryptocurrencies. However, after the government crackdown on Bitcoin and other cryptos, particularly due to environmental concerns, the crypto industry has looked for alternative options.
GOP leaders in Texas have not raised any concerns regarding energy consumption or the impact on climate, with Senator Cruz stating,
“For bitcoin, you need a lot of energy. If there’s one thing Texas has in large amounts, if there’s one thing Texas knows about, deeply, it is energy.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
